Oberoi Realty Q1 FY27 Results (NSE: OBEROIRLTY)
Signal: Margin expansion
The read
Oberoi Realty delivered a solid Q1FY27 with 31.7% revenue growth and 374bps operating margin expansion, reflecting strong execution in the real estate segment. The record NCR launch 'Three Sixty North' with ₹8,109 crore gross bookings is a major forward-positive, though revenue recognition will occur over future quarters. QoQ revenue decline is typical of project-based recognition. Low leverage (D/E 0.15) and strong liquidity provide financial flexibility.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,300.89 Cr | 31.7% | -25.7% |
| EBIT | ₹764.07 Cr | 31.3% | |
| Net profit | ₹543.51 Cr | 29.0% | |
| EPS | ₹14.95 | 29.0% | |
| EBIT margin | 56.43% |
P&L walk
Revenue growth of 31.7% YoY driven by real estate segment (+32.7% YoY), margins expanded 374bps YoY to 56.43% on better project mix and cost control; PAT growth of 29% YoY in line with operating performance, tax rate increased to 23.6% from 16.9%.
Segments
Real estate segment remains the dominant driver, contributing 96.4% of segment revenue and 97.7% of segment results; segment PBIT grew 43.4% YoY to ₹73,120 lakh. Hospitality segment grew 15.0% YoY in PBIT but remains small (₹1,698 lakh).
Key positives
- Revenue grew 31.7% YoY to ₹1,30,089 lakh, driven by real estate segment.
- Operating margin expanded 374bps YoY to 56.43%, the highest in recent quarters, due to project mix and cost control.
- Real estate segment PBIT surged 43.4% YoY to ₹73,120 lakh.
- Successful NCR launch with gross bookings of ₹8,109 crore at 'Three Sixty North' – a strong pipeline for future revenue.
- Low debt/equity ratio of 0.15, improved from 0.19 a year ago.
- Interim dividend of ₹2 per share declared, maintaining shareholder returns.
Key concerns
- Revenue declined 25.7% QoQ due to project completion timing, though real estate results are inherently lumpy.
- Effective tax rate rose to 23.6% from 16.9% YoY, compressing PAT growth relative to operating profit.
- Inventory turnover (annualised) at 2,020 days remains high, reflecting long project cycles.
Research and educational content only. Not investment advice.